Correlation Between Sinclair Broadcast and Cumulus Media
Can any of the company-specific risk be diversified away by investing in both Sinclair Broadcast and Cumulus Media at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sinclair Broadcast and Cumulus Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinclair Broadcast Group and Cumulus Media Class, you can compare the effects of market volatilities on Sinclair Broadcast and Cumulus Media and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sinclair Broadcast with a short position of Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinclair Broadcast and Cumulus Media.
Diversification Opportunities for Sinclair Broadcast and Cumulus Media
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sinclair and Cumulus is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sinclair Broadcast Group and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class and Sinclair Broadcast is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sinclair Broadcast Group are associated (or correlated) with Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Sinclair Broadcast i.e., Sinclair Broadcast and Cumulus Media go up and down completely randomly.
Pair Corralation between Sinclair Broadcast and Cumulus Media
If you would invest 1,257 in Sinclair Broadcast Group on June 4, 2025 and sell it today you would earn a total of 190.00 from holding Sinclair Broadcast Group or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.61% |
| Values | Daily Returns |
Sinclair Broadcast Group vs. Cumulus Media Class
Performance |
| Timeline |
| Sinclair Broadcast |
| Cumulus Media Class |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Sinclair Broadcast and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinclair Broadcast and Cumulus Media
The main advantage of trading using opposite Sinclair Broadcast and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinclair Broadcast position performs unexpectedly, Cumulus Media can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cumulus Media will offset losses from the drop in Cumulus Media's long position.| Sinclair Broadcast vs. Nexstar Broadcasting Group | Sinclair Broadcast vs. News Corp A | Sinclair Broadcast vs. Fox Corp Class | Sinclair Broadcast vs. Liberty Media |
| Cumulus Media vs. iHeartMedia Class A | Cumulus Media vs. Beasley Broadcast Group | Cumulus Media vs. Saga Communications | Cumulus Media vs. Entravision Communications |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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